Winnipeg – ICE Futures canola contracts were stronger on Tuesday, taking some direction from gains in Chicago Board of Trade soybeans and soyoil.
After dropping sharply on Monday, canola was looking overdone to the downside and due for a corrective bounce, according to participants.
Signs of improving export demand were also supportive.
However, exports continue to run behind the year-ago pace with large supplies overhanging the market.
Strength in the Canadian dollar, which was up by about a third of a cent, also tempered the advances and canola held within its well-established sideways trading range.
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About 31,261 canola contracts traded on Tuesday, which compares with Monday when 25,432 contracts changed hands. Spreading accounted for 25,294 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, as Monday’s losses uncovered some chart support and speculators returned to the buy side.
Trade talks underway between the United States and China in Beijing this week were bringing some optimism to the soy market. Reports that U.S. lawmakers had reached a tentative deal on border security that would help avert another government shutdown, also underpinned the futures.
Declining production estimates out of Brazil were another supportive influence, although the advancing harvest in the South American country tempered the advances.
CORN futures also moved higher on the back of improving Chinese trade sentiment.
The USDA reported a flash sale of 122,000 tonnes of corn to unknown destinations this morning, providing additional support.
Strength in crude oil was another bullish influence for the ethanol-linked grain.
WHEAT futures ended mixed, with gains in Minneapolis and Chicago, but a softer tone in Kansas City hard red winter wheat.
Talk that Russia has no plans to restrict exports any time soon, despite tightening stocks in the country, put some pressure on wheat throughout the day.
Overnight losses in European wheat markets also weighed on values, although ideas that U.S. wheat is looking more attractively priced on the global export market were somewhat supportive.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up 69 cents at US$53.10 per barrel.
In the afternoon, the Canadian dollar was trading around US75.48 cents, down from 75.22 cents the previous trading day. The U.S. dollar was C$1.3248.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 19 481.20s +1.50 +0.31%
Canola May 19 489.60s +1.70 +0.35%
Canola Jul 19 497.50s +1.70 +0.34%
Canola Nov 19 497.50s +2.80 +0.57%
Canola Jan 20 502.50s +3.20 +0.64%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybean Mar 19 917-4s +12-4 +1.38%
Soybean May 19 931-6s +12-4 +1.36%
Soybean Jul 19 945-0s +12-0 +1.29%
Soybean Aug 19 950-2s +11-6 +1.25%
Soybean Sep 19 952-6s +11-4 +1.22%
Soybean Meal Mar 19 309.2s +4.3 +1.41%
Soybean Meal May 19 313.2s +4.3 +1.39%
Soybean Meal Jul 19 317.3s +4.5 +1.44%
Soybean Oil Mar 19 30.33s +0.09 +0.30%
Soybean Oil May 19 30.67s +0.10 +0.33%
Soybean Oil Jul 19 30.99s +0.11 +0.36%
Corn Mar 19 378-2s +5-4 +1.48%
Corn May 19 386-2s +5-4 +1.44%
Corn Jul 19 393-6s +5-2 +1.35%
Corn Sep 19 396-6s +4-6 +1.21%
Corn Dec 19 402-0s +4-2 +1.07%
Oats Mar 19 287-0s +4-6 +1.68%
Oats May 19 289-4s +4-4 +1.58%
Oats Jul 19 287-0s +2-4 +0.88%
Oats Sep 19 277-4s +1-0 +0.36%
Oats Dec 19 270-4s +1-6 +0.65%
Wheat Mar 19 520-0s +1-6 +0.34%
Wheat May 19 521-6s +1-2 +0.24%
Wheat Jul 19 522-0s -0-6 -0.14%
Wheat Sep 19 530-2s -0-2 -0.05%
Wheat Dec 19 544-2s +0-4 +0.09%
Minneapolis
Spring Wheat Mar 19 577-2s +3-4 +0.61%
Spring Wheat May 19 571-4s +2-0 +0.35%
Spring Wheat Jul 19 576-2s +1-6 +0.30%
Spring Wheat Sep 19 581-0s +1-0 +0.17%
Spring Wheat Dec 19 591-6s -0-4 -0.08%
Kansas City
Hard Red Wheat Mar 19 492-0s -1-6 -0.35%
Hard Red Wheat May 19 497-0s -2-4 -0.50%
Hard Red Wheat Jul 19 503-6s -3-4 -0.69%
Hard Red Wheat Sep 19 514-4s -4-0 -0.77%
Hard Red Wheat Dec 19 532-2s -4-0 -0.75%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 19 126.825s -1.000 -0.78%
Live Cattle Apr 19 127.875s -0.425 -0.33%
Live Cattle Jun 19 118.150s -0.225 -0.19%
Feeder Cattle Mar 19 144.400s -0.275 -0.19%
Feeder Cattle Apr 19 146.650s -0.025 -0.02%
Feeder Cattle May 19 147.675s unch unch
Lean Hogs Feb 19 55.175s unch unch
Lean Hogs Apr 19 60.325s +1.250 +2.12%
Lean Hogs May 19 68.875s +1.475 +2.19%
